Joint Venture for Fix and Flip in Saint Louis, MO

[Jonathan Dudley]

BP Friends,

I am looking for some advice on creating a joint venture for a fix and flip with a good friend from college. Profit will be split 50/50 I am trying to determine what I am missing or over looking.

We will be in the Saint Louis, MO area, but we will both be located two hours away during the week. We both travel to Saint Louis on the weekend and both our families are located in the area so we have a large support network.

We will both be bringing 50% of the down payment. We both have hands on knowledge of construction through small rehabs and he works as architect. We will be working with an attorney to get a partnership agreement finalized and signed.

We are going to use bank financing in the form of a mortgage and construction loan to buy the property and rehab it. We both have good credit scores and good jobs. Currently, I own one duplex which I live in. Below is a breakdown of what we would like to do.

Break Down example:

Loan amount 100,000 (30% down payment)

50,000 to buy property

40,000 for rehab

10,000 utilities, insurance, taxes, closing cost, etc.


Sell house for 140,000-160,000

We would also establish an LLC and the property when be under the LLC name. We will both be on the loan for the house.


Will a bank be willing to finance our funding strategy?

What precautions should we take in this partnership?

Thanks for all your help.